Despite the title, the real thrust of the piece is that regulations – taxes, here – are inputs into a complex system. The more complex, the less predictable and the more likely to have unintended consequences. Or, perhaps, “intended” consequences which benefit certain participants over others.

We think that of regulations as rules of the road, or adding fairness, or enhancing transparency. And they might! But those assumptions are, often, insufficient models and at worst, dangerously incorrect.